PHILADELPHIA – The City of Philadelphia and the Philadelphia Industrial Development Corporation (PIDC) today launched the COVID-19 Small Business Relief Fund, a more-than-$9 million grant and loan program designed to support Philadelphia small businesses, help maintain payroll obligations, and preserve jobs impacted by the spread of the virus.
In addition to the $9 million commitment of City and PIDC funds, an additional $250,000 has been donated by the Daniel B. and Florence E. Green Foundation.
The Philadelphia COVID-19 Small Business Relief Fund will be a tiered program providing targeted support for small businesses, which face an unprecedented challenge due to the ongoing global pandemic. The fund offers a mix of new grants and zero-interest loans for businesses that make under $5 million in annual revenue. Tiers include:
- Microenterprise Grants — $5,000 per business for businesses with less than $500,000 in annual revenue.
- Small Business Grants — Up to $25,000 per business for businesses with annual revenue between $500,000 and $3 million.
- Small Business Zero-Interest Loan — Up to $100,000 per business for businesses with annual revenue between $3 million and $5 million.
“We are acutely aware of the potentially devastating impact that the spread of COVID-19 is having on small businesses in Philadelphia and around the country,” said Mayor Jim Kenney. “These businesses are the backbone of our city’s economy, and this fund will help some of our small businesses survive the COVID-19 crisis while also retaining as many jobs for workers as possible.”
The COVID-19 Small Business Relief Fund was developed to respond to needs identified in the COVID-19 Business Impacts survey, which was sent out last week. More than 2,500 business owners responded.
“Philadelphia’s business community has been severely impacted, and we must do everything in our power to ensure that capital continues to flow to small businesses during this critical time,” said Sylvie Gallier Howard, Acting Commerce Director for the City of Philadelphia. “Acting quickly will help get businesses the funding they need to continue operations and preserve jobs.”
Businesses can now apply for assistance from the fund at www.phila.gov/COVID-19-business-relief. There is one application for all three tiers of the fund, and it is available in English, Spanish, and Chinese. Applications will be reviewed on a rolling basis. Once all final application materials are received, the review, award decision and disbursement process is targeted to take approximately two weeks. Priority will be given to businesses that demonstrate a loss of over 50 percent of average revenue, a plan for recovery, and a commitment to retaining their employees as long as possible.
“With this new fund, we are sending a message to entrepreneurs and small business owners across Philadelphia, and to the many people who rely on these employers for their livelihood, that we will do all that we can to support them during this unprecedented crisis,” said Anne Bovaird Nevins, President of PIDC. “Our team stands ready to put these much-needed resources to work and help as many people as we can as quickly as possible.”
PIDC will continue to offer its existing lending programs for small and midsize businesses on flexible terms to provide working capital, fund contract receivables, refinance high-interest debt, and meet other needs. All applicants to the COVID-19 Small Business Relief Program can also be considered for additional flexible financing from PIDC. Those with existing loans are also eligible for this relief.
Businesses are also eligible to apply for SBA Economic Injury Disaster Loans and can do so here.
The Daniel B. and Florence E. Green Foundation (“Green Family Foundation”) and Firstrust Bank are joining the leadership of the City and PIDC through the Philadelphia COVID-19 Small Business Relief Fund to assist small business owners during this incredibly challenging time.
“The Green Family Foundation, established in honor of my parents, is grateful to be able to provide essential support to entrepreneurs and their businesses that have been most impacted in response to this pandemic”, said Richard J. Green, Chairman and CEO of Firstrust Bank and Trustee of the Green Family Foundation.
Tax Filing Extensions:
In addition to the COVID-19 Small Business Relief Fund, the City is extending filing and payment dates for Real Estate and some business taxes.
The City will honor the federal extensions granted to businesses from the IRS for filing and payments until July 15, 2020 for the Business Income and Receipts Tax and the Net Profits Tax. This policy includes estimated payments.
For commercial and residential property owners who are unable to pay their Real Estate Tax by March 31, the Department of Revenue has extended the deadline to pay an additional 30 days. The due date for 2020 Real Estate Taxes is now April 30, 2020. The deadline to apply for an installment payment plan for 2020 Real Estate Tax has also been extended until April 30, 2020. These plans have always been available to all seniors and low-income homeowners.
Taxpayers who can file and pay their taxes by April 15, 2020 are strongly encouraged to do so. This will help ensure continuity of City and School District operations.
Resources for Businesses and Workers
Additional resources for businesses can be found here. The City will also continue to explore additional relief options for businesses of all sizes that are made available through the state and federal government, as well as other sources.
Resources for workers have been added to the phila.gov/covid-19 page. A blog post will be updated with additional resources as they become available. The post includes a survey for workers affected by COVID-19 to gain more information about the impact.